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Ur-Energy Announces Completion Of Bought Deal Financing

LITTLETON, Colo., Feb. 17, 2016 /CNW/ -- Ur-Energy Inc. (NYSE MKT:URG, TSX:URE) (the "Company" or "Ur-Energy") is pleased to announce that it has completed its previously-announced bought deal financing with a syndicate of investment dealers led by Cantor Fitzgerald Canada Corporation and including Raymond James Ltd. and Dundee Securities Ltd. (the "Underwriters"). The Underwriters purchased, on a bought deal basis, 12,921,000 common shares of Ur-Energy at a purchase price of US$0.50 per common share, for aggregate gross proceeds to the Company in the amount of US$6.46 million (the "Offering"), which includes 921,000 common shares acquired pursuant to the partial exercise of the Underwriters' over-allotment option.

Ur-Energy plans to use the net proceeds of the Offering, (i) to advance the operations and development of the Lost Creek Project including wellfield construction and development as identified in the recently-completed Amended Preliminary Economic Assessment for the Lost Creek Property, (ii) for payment of ongoing debt service obligations, and (iii) for general corporate purposes.

Jeff Klenda, the Executive Director of the Company, purchased 1,000,000 common shares under the Offering for gross proceeds of US$500,000. Mr. Klenda's participation constitutes a "related party transaction" as defined in Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. The audit committee of the Company and the board of directors of the Company, excluding Mr. Klenda, approved the Offering including the related party transaction. The Company did not file a material change report more than 21 days prior to closing. The shorter period was necessary in order to permit the Company to close the Offering in a timely manner.

The Offering was made pursuant to a short form prospectus in all Provinces in Canada, other than Quebec, and pursuant to an effective shelf registration statement of the Company previously filed with the U.S. Securities and Exchange Commission. The Offering was made by means of a prospectus supplement and the accompanying prospectus to that shelf registration statement. A copy of the U.S. prospectus supplement and accompanying base prospectus relating to the Offering is available from the SEC website at www.sec.gov and a copy of the Canadian preliminary and final short form prospectuses for the Offering of the common shares in Canada is available on SEDAR at www.sedar.com. Alternatively, copies of the U.S. prospectus supplement and accompanying base prospectus can be obtained by contacting Cantor Fitzgerald & Co., attention: Equity Capital Markets, 110 East 59th Street, New York, New York 10022, telephone: 212-829-7122 and copies of the Canadian preliminary and final short form prospectus may also be obtained by contacting the Company at 866-981-4588.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale of these securities would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Ur-Energy Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central Wyoming. The Lost Creek processing facility has a two million pounds per year nameplate design capacity. Shirley Basin, our newest project, is one of the Pathfinder Mines assets we acquired in 2013. The Company has begun to submit applications for permits and licenses to operate Shirley Basin. Ur-Energy is engaged in uranium mining, recovery and processing activities, including the acquisition, exploration, development and operation of uranium mineral properties in the United States. Shares of Ur-Energy trade on the NYSE MKT under the symbol "URG" and on the Toronto Stock Exchange under the symbol "URE." Ur-Energy's corporate office is located in Littleton, Colorado; its registered office is in Ottawa, Ontario. Ur-Energy's website is www.ur-energy.com.

Cautionary Note Regarding Forward-Looking Information: This release may contain "forward-looking statements" within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., the use of proceeds from the offering) and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, satisfaction of the conditions to closing of the offering, delays in obtaining required stock exchange or other regulatory approvals, commodity price volatility, the impact of general business and economic conditions, as well as other factors described in the public filings made by the Company at www.sedar.com and www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future.